The Government approved last March a decree by which

7,000 million euros

were transferred to the autonomies for

direct aid to companies and the self-employed

to alleviate the effects of the economic crisis caused by the covid. A year later, the Executive of Pedro Sánchez will find that

a third will return to the treasury

. The requirements imposed and the

difficulties

in processing, transferred to the communities, have lowered the level of execution of these funds, which has barely reached

65% in some territories

. In others, it has not even reached 50% of the amounts assigned in the distribution.

This is the case of the

Valencian Community

, where the so-called

Resistir and Resistir Plus Plan

have distributed a total

of 312 million euros to 16,250 companies and freelancers,

only

48%

of the 647 million that the Government contributed. Three calls have been necessary for the execution of the plan, as well as the hiring of the public company Tragsa to be able to manage them.

Between the first and the second, 235 million were granted and in the last one in December, with the relaxation of some requirement made by the Treasury in September, 76.5 million more. Something that the Minister of Finance,

Vicent Soler

, considers

insufficient to compensate the productive fabric hit by the crisis,

hence he has requested that the deadline to request these aid be extended until June 30. For Soler, one of the reasons why there are no more beneficiaries is the existence of "

strict criteria in the Royal Decree

", which the Valencian Community tried to make as flexible as possible within the state framework.

These grants were conceived only for companies, with a maximum of 200,000 euros, and self-employed, up to 3,000, from sectors such as

tourism, hospitality or commerce

that had not had losses in 2019 and whose turnover would have fallen by 30% as a direct consequence of the pandemic.

The funds could not be used to pay debts

with the Social Security or the Treasury, one of the main complaints of the self-employed. Its purpose was mainly suppliers, supplies, rentals or loans. After the autonomies expanded the sectors, the criterion of not having had losses in 2019 disappeared and fixed expenses were allowed. Still,

the aid has not had the intended impact.

What happened in the Valencian Community is no exception.

Autonomies such as

Aragon, Castilla-La Mancha, Murcia or Asturias

maintain a level of execution of these funds below half.

Also

Galicia

, which has launched four calls to grant the 234.4 million granted by the Government and has barely managed 6,000 applications that do not cover 50%.

Balearic and Canary Islands, the exception

The Community of Madrid, Catalonia and La Rioja

exceed

65%

, while

Andalusia

remains at

54%

, with 600 million disbursed of the 1,109 granted.

The exceptions have been the

Balearic and Canary Islands

.

Due to its particular link with tourism, the Government reserved 2,000 of the 7,000 million to these two autonomies and extended the aid that employers could request to five million euros.

In the case of the

Balearic Islands

,

100% of the 855 million

allocated have reached those affected who requested the aid.

Canarias

, which received 1,144, is

around 80% in execution.

In addition to the strict requirements and the administrative bureaucracy of the procedure, one of the main problems that these aids have presented due to their design is that they were designed

only for companies that were not up to date with the payment of their debts

, with which they were excluded all those who made an effort during the worst months of the pandemic to meet their financial obligations.

The aid could only be used to pay

debts

and fixed costs pending payment that would have accrued between March

1, 2020

and May

31, 2021.

This nuance, which came to light when the regulation was published, led many communities to

complain about the design

and to warn already then, in April of last year, that

part of the funds would not be executed.

In addition to the fact that, due to its wording, the rule seemed

to encourage companies to stop paying their debts

in order to access the aid, some autonomies warned.

"The purpose of the aid seems to be aimed at creditors getting paid, in a way that

discriminates against companies that have made payments in a timely manner

, favoring those that have not done so and maintain the debt. Future payment requirements and priority, in addition to being complex, are difficult to understand and justify, "denounced the

Junta de Andalucía

.

The

distribution system

used to distribute aid funds among the autonomous communities was also the subject of controversy, since the Government took into account the impact of the pandemic on the

wealth

of the communities in 66%, and in 33 %

% the evolution of

employment

and, specifically, of

youth unemployment

. The situation that the productive fabric of each community was going through, to which the aid would ultimately be directed, was not assessed.

According to this criterion for the distribution of 5,000 million,

Andalusia

was the community that received the largest amount of funds (1,109 million), followed by

Catalonia

(993 million), the

Community of Madrid

and the

Valencian Community

(both with 647 million) .

The autonomous cities of

Ceuta and Melilla

(13 and 12 million, respectively),

La Rioja

(32 million),

Cantabria

(55 million) and the

Comunidad Foral de Navarra

(67 million) received the least.

The 2,000 million for the archipelagos were distributed in such a way that the

Balearic Islands

received 855 million and the

Canary Islands,

1,144 million.

According to the criteria of The Trust Project

Know more

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  • Madrid

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